The parent company of cryptocurrency exchange Kraken has agreed to acquire digital asset derivatives platform Bitnomial for up to $550 million, with the cash and stock deal valuing the company at $20 billion, Payword said in a press release shared exclusively with CoinDesk.
Founded more than a decade ago, Bitnomial is the first crypto-native platform to secure all three licenses required to operate a full-stack derivatives business in the country. We have obtained operating licenses for designated contract markets, derivatives clearinghouses, and futures commission providers. The acquisition effectively shortcuts the years of increased regulation that Payward has undergone as it expanded its U.S. footprint.
“The shape of the market is determined by the clearing infrastructure, not the front end,” said Arjun Sethi, co-CEO of Payward, noting that Bitnomial’s crypto-native payments, collateral, and 24/7 trading capabilities are core to the strategy.
Trading activity in the crypto sector is starting to pick up after a prolonged slump, as companies look to consolidate capabilities and strengthen infrastructure following years of market volatility and regulatory scrutiny.
Rather than pursuing growth at all costs, larger, better-capitalized companies are increasingly targeting acquisitions that fill strategic gaps such as custody, derivatives, and compliance. At the same time, lower valuations are creating opportunities for buyers, and smaller start-ups facing financial constraints are more likely to be acquired, setting the stage for a more tangible phase of industry consolidation.
scale up
Kraken is scaling up ahead of a planned initial public offering (IPO). Payward said it confidentially filed a draft S-1 with the U.S. Securities and Exchange Commission on November 19 of last year.
However, CoinDesk reported last month that the company had put its IPO plans on hold due to difficult market conditions. The company is still considering an initial public offering, but probably not until market conditions improve, the people said.
In recent years, Kraken has pursued a relatively targeted but increasingly strategic M&A strategy, with an emphasis on expanding beyond pure crypto trading into multi-asset and derivatives infrastructure.
The most significant transaction was the $1.5 billion acquisition of NinjaTrader, a US-based retail futures platform and CFTC-registered FCM in 2025, making it the largest transaction ever between traditional finance and cryptocurrencies and giving Kraken a direct foothold into the US derivatives market and a large base of futures traders.
Prior to that, Kraken executed small tuck-in acquisitions in 2023, such as BCM, and subsequent acquisitions of other platforms and exchanges, including the acquisition of Small Exchange, with the aim of building derivatives and institutional capabilities.
Overall, Kraken’s trading activity shows a clear strategy. We leverage M&A to acquire regulatory licenses, trading infrastructure, and user base to help us evolve into a broader institutional-grade, multi-asset trading platform across crypto and traditional markets.
Derivatives business
The integrated platform will combine Bitnomial’s regulated infrastructure with Payward’s global distribution and liquidity across brands including Kraken and NinjaTrader. Initial offerings will include spot margin, perpetual futures, and options for U.S. customers under the oversight of the Commodity Futures Trading Commission.
Payward has a global derivatives business, acquiring a UK crypto futures platform in 2019 and launching in the EU in 2025. Bitnomial adds a fully regulated US stack.
The partnership also expands the company’s B2B infrastructure division, Payward Services, allowing banks, fintechs and brokerages to access regulated US derivatives through a single API integration.
The transaction covers 100% of Bitnomial’s shares and is expected to close in the first half of 2026, subject to customary conditions and regulatory filings.
read more: Cryptocurrency exchange Kraken was the target of an extortion attempt, but announced that no violations were committed and customer funds were not at risk.
